Good Mornin’
I’m sure it was a busy weekend of shoveling snow and superbowling!!
…..I have a habit of hitting the hibernation button after halftime
There was a different event echoing through the Henderson house this weekend. My ladies took a big trip downtown to watch the Live Aid musical ‘Just for One Day’ at the magnificent Mirvish theater.
In the spirit of that monumental concert held in London and Philadelphia back in 1985, we had Dylan, Dire Straits, and Queen blasting in the house all weekend. I couldn’t help but smile with a sense of nostalgia and understanding, of how my proud my parents must have felt when Wayne and Garth introduced my generation to Queen. I was the same age as my daughter Presley-Mae is now, when one of my parent’s friend Lone “stone cold” Wilson burned me the double greatest hits! Ahhhhhhhhh how technology has changed.
It’s been said that change is the only constant in life, so to it seems is uncertainty. The world is a chaotic place, and we are seeing uncertainty in real time, right now. It looks like some tariffs imports on aluminum and steel, some news last night from Air Force One on route to the Super Bowl.
Things change, plans get disrupted, and the future often feels like a hazy fog. When all this uncertainty has you feeling Under Pressure, it's tempting to throw your hands up and say, "What's the point of planning when everything could change tomorrow?"
Well….I like to think of it like navigating a winding road in the dark, in the snow. You might not know exactly what's around the next bend, but having a map and a general direction helps you avoid veering off course completely.
Even amid uncertainty, even when plans shift, the act of planning remains vital.
Navigating the Storm: Planning Amid Uncertainty
In the world of Wealth Management, there's a clear link between having a plan and feeling confident about the future and we see those without one often end up longing to Break Free from the stress and anxiety caused by uncertainty. Planning is not solely for the optimists; it's crucial for everyone, especially when much is at stake. Here’s an interesting statistic for you….did you know that less than half of Canadians 47% have a financial plan? More surprisingly, only 21% consider it dynamic and evolving.
That’s in Wealth Planning, the topic is also quite interesting in our work with businesses and enterprising families. Check out this stat…..
In business strategic planning, several studies over the years have been consistent, revealing that that 67% of strategic plans fail. Experts have opined for decades on the reasons behind the spectacular failure rates of strategy.
Even with these nasty statistics….the reality is, failing to plan is akin to sailing without a rudder. You'll drift aimlessly, at the mercy of whatever comes your way.
The Importance of Planning
I find that Wealth planning provides insights applicable to business planning. Just as individuals with clear financial plans exhibit greater confidence in their future, businesses with strong strategies are better positioned to handle unpredictable markets. In both settings, a plan isn’t about predicting the future with precision—it’s about setting a course and continuously adapting to new circumstances.
In Wealth Management, the confidence stems from the planning process itself, echoed in business environments, where I’m of the mind that strategic planning must shift from static models to dynamic ones. Both personal and corporate strategies should be regularly reassessed, adapting to market shifts and personal circumstances.
The late Daniel Kahneman, Nobel Prize winner and author of Thinking, Fast and Slow pointed out—"we're all inclined towards the illusion of understanding the past, making us less equipped to predict the future”. Wealth planning often induces anxiety, especially when the future looks unclear. In uncertain times, the urge to "wait and see" is strong. What if our current assumptions don't stand tomorrow? What if today's decisions become irrelevant next week? While valid, a passive approach can lead to missed opportunities and stagnation.
Instead, whether we are planning for our family, or planning for our businesses future, we need to remain proactive. Even when it feels safer to bunker down and wait out the storm, standing still can be just as risky as making a wrong move. If we can incorporate resilience and flexibility into our strategies, we’ll thrive during adversity.
It’s Time to Evolve Our Planning
Here’s the deal – our planning in uncertain times must evolve from the stale rigid processes it is, to a fluid and responsive exercise. Traditional approaches often fall short in dynamic environments. We must adapt
With that in mind, I thought I’d share a few in insights that might help you stay on the road….
- Embrace Vision-Driven Planning: Begin by revisiting your core vision and ground your decisions in these elements for stability amidst instability. This ensures alignment and focus, avoiding reactive measures that detract from long-term goals.
- Focus on Known Variables: Amidst unpredictability, identify constants in your personal life or business environment to build strategies around, this’ll create a reliable framework to explore new opportunities.
- Incorporate External Insights: It’s important to have the right people around your table. Surround yourself with the right trusted expert advisors who can integrate external trends and signals into strategic discussions to anticipate unforeseen events and develop contingency plans.
- Address Uncertainty Directly: Engage with uncertainty in planning, openly discussing potential risks and scenarios. This fosters agility, enabling quick pivots as circumstances shift.
Whether in our personal financial world or in our business, we must tailor our planning process to fit unique needs, crafting a dynamic model that fosters structured discussion, uncovering alternative pathways, and facilitating high-quality decision-making. Just like wealth planning, successful business strategies adapt, evolve, and embrace opportunities born from uncertainty.
Tip: Keep Planning, Even When Plans Shift
Traditional strategic planning often assumes a predictable future, yet today's world rarely is. So, how can you adapt your planning process to better navigate uncertainty?
In uncertain times, continue planning. Remain flexible and adaptable, ready to change course as needed. This proactive mindset ensures you're advancing your wealth and business, not merely reacting to external forces.
In both wealth and business planning, adapting to uncertainty and capturing strategic opportunities is vital for overcoming challenges and achieving long-term success.
Reflect on this as we cruise into the week…….
Geldof assembled Live Aid in under 30 days, an event simultaneously staged at Wembley Stadium in London and John F. Kennedy Stadium in Philadelphia. More than 75 of the world's top artists performed, with an estimated audience of 1.9 billion across 150 nations watching live, nearly 40 percent of the global population. Wild, right!?
In a landscape of rapid change and unpredictability, planning remains a crucial tool. When done thoughtfully and intentionally, it prepares you for challenges while empowering you to seize new opportunities. By adopting a disciplined yet flexible approach, we can confidently transform uncertainty into a catalyst for growth.
Freddie Mercury once said, “If it's planned, it's boring.”
The plan will evolve, but planning is paramount – stay engaged, stay dynamic, and stay excited.
Be well and enjoy the moments,
G. Derek Henderson